From the following which production function exhibits increasing returns to scale? Option 1: f(tx, ty) > t f(x, y). Option 2: f(tx, ty) < t f(x, y). Option 3: f(tx, ty) = t f(x, y). Option 4: x^α y^β.

The answer is 'f(tx, ty) > t f(x, y).'. View full solution:

CUET Economics - From the following which production function exhibits increasing returns to scale? | PYQs + Solutions

CUET Economics 2025 30 May Shift 2

Micro

Medium

$f(tx, ty) > t f(x, y)$ .

$f(tx, ty) < t f(x, y)$ .

$f(tx, ty) = t f(x, y)$ .

$x^α y^β$ .

✅ Correct Option: 1